I need to have liquid money available for an emergency, and I need a good way to invest it at the same time. Does anyone know what to do in this case?
An IRA is NOT liquid money. You need a Vanguard account. Go to www.clarkhoward.com and read his articles on investing. Or go to www.latimes.com and see their "investing 101".
For 2006 and 2007 you can contribute up to $4000. If you are married, your spouse can contribute the same to an account under their name as well.